There will be no PAUSE by the FED as long as:
Jobless claims remain low and steady.
Wages continue to ascend.
And, the Dollar continues to descend.
Regardless of any other consequences, the FED must continue to raise interest rates in defense of the U.S. Dollar. There simply is NO other way for the FED to engineer a 'soft-landing' from it's decade long monetary policy. (The money supply has doubled since 1996, in fact, more money has been added to the economy in the last five years than even existed in 1980)
Also, the FED is likely continuing to "create" money at Weimar Republic rates, but no one but them will know for sure. (M3 reporting was "discontinued" in March 2006)
The "Inflation Engine" calculated to pay U.S. Govt. debts to Baby-Boomers with increasingly worthless currency, is well underway, and shows no signs of stopping.
stephenhsmith 17May2006
